For the Aggregate Supply Curve,the Profit Effect

question 47

Multiple Choice

For the aggregate supply curve,the profit effect

• A)Provides an incentive for producers to decrease output when prices rise.
• B)Dominates in the long run and causes the curve to be upward-sloping.
• C)Along with the cost effect causes the curve to be downward-sloping in the long run.
• D)Is temporary in the short run,while in the long run it is canceled out because the cost effect dominates.

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Definitions:

Emotional Susceptibility

A person's tendency to be easily affected by emotional experiences or to be more sensitive to emotional stimuli.

Essential Supplies

Materials or items that are considered absolutely necessary for the operation of a business or during a crisis situation.

Deceit

The act of misleading or deceiving someone through intentionally false statements or misrepresentations.

Misrepresentation

A false or misleading statement that induces another party to enter into a contract, possibly rendering the contract voidable.